Harare – Hospitality and retail group Meikles Limited’s revenue has grown from $453.6 million in 2016 to $457.6 million in 2017 to $534.9 million for the year ended March 31, 2018 on the back of massive performance across its operating sectors.

In a statement accompanying the Group’s financial results, Chairman John Moxon said the Group performed well during the year under review.

“Group earnings before interest, taxation, depreciation and amortisation (“EBITDA”) have grown from $12.2 million in the financial year to 31 March 2016 to $24.8 million in the financial year to 31 March 2017 to $41.1 million in the year under review.

“Profit before taxation has grown by 225 percent to US$19.2 million compared to $5.9 million in 2017.”

Moxon said Supermarkets trading as TM and Pick n Pay EBITDA grew by 45 percent to US$34.5 million.

“The segment traded in 55 stores. In the forthcoming financial year, the segment plans to open a number of new stores and there will be further upgrades of existing stores.

“Consistent growth is anticipated in the coming year. The segment has no borrowings and has the resources to implement future growth.”

In agriculture, Moxon said EBITDA grew to US$10.3 million from US$6.1 million in the previous year.

“The quantum of tea harvested on the Tanganda Estates was an all-time record on a calculated comparative basis. Selling prices for tea, avocados and macadamias were greater than in the previous year.

“The avocado and macadamia areas planted over the last years are significant in size, but remain largely immature. Although volumes of both crops were significantly greater in the year under review than in the previous year, the process to maturity on the existing plantations will take another three years.

“Once maturity is reached, production in these areas will exceed current production levels by a very significant tonnage. Sales and profit contribution are expected to grow over the next three years to a level where the historic dependence on tea, both in bulk and in packeted form, will be diminished, not in terms of a reducing tea performance, which i0s expected to continue to grow in contribution, but by enhanced overall performance following the impact of the new agricultural products.”

In the hospitality sector, EBITDA increased to US$4.1 million in the current year from US$1.8 million in the previous year.

“Sales and profits include the entire results of Meikles Hotel and only 50 percent of The Victoria Falls Hotel, where the segment is in equal partnership with a third party.

“A refurbishment programme for The Victoria Falls Hotel will commence before the end of 2018. However, of greater significance a project to enlarge the hotel with additional accommodation is currently in the initial stages of planning, and implementation is to be expedited.

He said both hotels are benefiting from a growth in occupancy during the first months of the new financial year

In retail and properties segments EBITDA loss in retail at US$4.2 million was almost identical to the loss of US$ 4.1 million in the previous year.

“This segment was badly affected throughout the year by the absence of funds due to the Group from Government, a position which is still prevalent in the early months of the new financial year. All Mega Market and M stores have been permanently closed, partly in the latter months of the year under review and partly in the early months of the new financial year.

“Management has successfully reduced expenditures, so going forward losses are reducing. With the knowledge that funding is to be forthcoming, the segment will focus on a retail offering that is compatible with the forward requirements of a smaller but more specialised retail offering.”

Additionally, Moxon said in order to focus on the activities of our main segments, the financial services operation was sold at a profit during the year under review.

He also said Meikles Guard Services continue to provide guard services to both Group companies and to certain third parties and it is anticipated that further third party contracts will be secured.

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